FinCEN Rule Ends AML Program Exemption for Banks that Lack a Federal Regulator
Latest from Subject to Inquiry
Still Standing: SEC Disgorgement Survives with Limitations
In Liu v. SEC, the Supreme Court answered the question that remained following its 2017 opinion in Kokesh v. SEC: “whether, and to what extent, the SEC may seek ‘disgorgement’ in the first instance through its power to award ‘equitable relief’” in a federal district court action under Section 21(d)(5) of the Securities Exchange Act of 1934 (15 U.S.C. § 78u(d)(5)). Liu v. SEC, No. 18-1501 at 1. In an opinion written by Justice Sotomayor (who…
Supreme Court to Resolve CFAA Circuit Split
Following an FBI sting, police sergeant Nathan Van Buren was convicted under the federal Computer Fraud and Abuse Act (“CFAA”) for selling license plate information obtained from a police database. The Eleventh Circuit upheld his conviction. In April, the Supreme Court granted certiorari in Van Buren v. United States, No. 19-783, to address a circuit split more than a decade in the making. At issue in Van Buren is the scope of the CFAA, specifically,…
U.S. Supreme Court Determines Action to Rescind DACA was Arbitrary and Capricious
On June 18, 2020, the U.S. Supreme Court issued a long-awaited decision regarding the Department of Homeland Security’s (“DHS”) choice to rescind the immigration program Deferred Action for Childhood Arrivals (“DACA”). The Court noted the question before it was not whether DHS may rescind DACA but rather, whether DHS followed proper procedure in rescinding the program. In a 5-4 vote, with Chief Justice John Roberts writing the opinion for the Court, the holding was narrow…
Price Gouging Enforcement in the Wake of COVID-19: Where is the FTC?
The Tip of the Iceberg Emerges: Initial Wave of Class Actions Reflect How Private Causes of Action Will Add Significantly to Price Gouging Litigation
As pandemic response task forces at the federal and state levels ramp up price gouging investigations and enforcement actions across the country, civil plaintiffs attorneys have jumped to the forefront by utilizing private causes of action to file price gouging-based class action lawsuits against dozens of major retailers and food supply companies. Senate Majority Leader Mitch McConnell’s prediction that the COVID-19 crisis will be the “biggest trial lawyer bonanza in history” appears to be taking…
Price Gouging Investigations Are Coming: What Industry Needs to Understand
Update: please see our May 14 post for information on private causes of action to file a series of price gouging-based class action lawsuits against several dozen major retailers and food supply companies.
In response to the national coronavirus health crisis, federal and state Attorneys General have elevated the investigation and prosecution of COVID-19-related crime, including price gouging, to the forefront of their enforcement priorities. Attorney General William Barr created a national COVID-19 task force…
Congressional Investigations: A Month In, Congress Signals Close Scrutiny of CARES Act and Paycheck Protection Program
The CARES Act is only a month old, but plans for investigations to track the nearly $3 trillion in coronavirus relief funds are already emerging from Congress. Among the mechanisms for oversight created and funded by the CARES Act itself is the Congressional Oversight Commission, a five-member committee overseeing $500 billion in loans doled out by the Treasury Department targeting larger businesses. Additionally, a new investigative select committee, chaired by Representative Jim Clyburn (D-SC) and…
DOJ Puts Collection of Civil Penalties on Hold in Response to COVID-19
In a pair of recent memoranda from the Executive Office for United States Attorneys (“EOUSA”) issued on March 31, 2020, and April 13, 2020, the United States Department of Justice (“DOJ”) has effectively halted enforcement actions and the collection of civil penalties. Included in this temporary suspension is the collection of civil penalties incurred in suits under the False Claims Act (“FCA”). The FCA is the federal government’s primary tool for recourse against false or…
SEC Enforcement Co-Directors Issue Statement on Insider Trading
Under the leadership of U.S. Securities and Exchange Commission Chairman Jay Clayton, the SEC’s Division of Enforcement has made the protection of Main Street investors its overarching priority. On March 23, 2020, Division of Enforcement Co-Directors Stephanie Avakian and Steven Peikin issued a statement to financial market participants re-emphasizing the SEC’s commitment to safeguard the integrity of the nation’s financial markets given the market disruption caused by the 2019 coronavirus disease (COVID-19).
In their Statement…